Gold, silver extend gains on buoyant demand

New Delhi-India (Apr 12)  Extending gains for the fourth straight day, gold prices moved up by another Rs 108 to trade at 29,311 per 10 gram on sustained demand from jewellers and stockists for wedding season.

Silver rebounded sharply to revisit the key Rs 44,000 per kg level on heavy speculative buyout coupled with good industrial support.

Pure gold (99.9 purity) shot up by Rs 108 to Rs 29,311 per 10 grams from Rs 29,203 previously, according to Riddisiddhi Bullions Ltd.

Standard gold (99.5 purity) rose by the same margin to quote at Rs 29,161 per 10 gram at 1400 hours from Friday's level of Rs 29,053, a bullion trader said.

Silver (.999 fineness) jumped by Rs 604 to Rs 44,076 per kg at 1400 hrs from Rs 43,472 yesterday.

Traders said increased buying from stockists as well as jewellers to meet the ongoing marriage season demand amid bullish global sentiment helped the precious metals to post gains.

Meanwhile, the yellow metal fell back modestly in overseas trade after its recent sharp spurt on the back of a stronger dollar and upbeat US economic data.

Gold for June delivery softened by USD 1.50 to settle at USD 1.319 an ounce on the Comex division of the NYMEX late yesterday, while silver May contract eased 14.5 cents to end at USD 19.95 an ounce.